TurboTax

The leading name in tax preparation software, TurboTax applies Intuit’s legendary ease to make taxpaying simpler. Whether helping first-time taxpayers find deductions or guiding investor through complex stock transactions and business deductions, TurboTax’s desktop and Web-based products are the definitive source for finding and taking deductions.

• With TurboTax, you will get the biggest refund you’re entitled to—guaranteed.* If you get a bigger refund using any other tax preparation method, we’ll give you your money back. It’s that simple.
• TurboTax simplifies taxes, so you can complete your return with speed, ease, and confidence.
• Concerned about being audited? With TurboTax, you don’t have to be. Our Audit Risk Meter™ helps you reduce your chance of an audit.
• More people trust their taxes to TurboTax than any other tax preparation method, so it’s no wonder it’s the #1 best-selling* tax software, year after year. In fact, last year alone, more federal returns were efiled with TurboTax than with all other consumer tax software combined.
• TurboTax consistently receives the highest marks from reviewers, making it the #1-rated tax software, year after year. In fact, USA Today said TurboTax 2007 was the “clear winner” over another tax software brand. And PC Magazine has ranked it #1 among the three leading tax software programs³ and once again gives it their Editors’ Choice award this year.
• TurboTax makes protecting your personal and financial information a top priority. Whether you choose a TurboTax CD, a TurboTax download, TurboTax Online, or free tax filing with TurboTax Online Free Edition, we’ve got you covered.

Supported Forms:
Federal Tax Forms Supported Varies by product:
TurboTax Free
TurboTax Basic
TurboTax Deluxe
TurboTax Premier

State Tax Forms Supported
All States Plus DC

Pricing:
Pricing Chart

Federal Free Edition + E-file

• Easy to use, easy to file, with extra help
• Handles big changes in your life
• Includes Audit Support Center
• Includes the IRS Tax Forms You Need
• State Return is additional $25.95

Federal Basic Edition + E-file – $19.95

• Includes all the feature from Free Edition PLUS
• Easy import features
• State Return is additional $34.95

Federal Deluxe Edition + E-file – $34.95

• Includes all the feature from Basic Edition PLUS
• Includes Audit Risk Meter
• Maximizes deductions for the biggest refund
• State Return is additional $34.95

Federal Premier Edition + E-file – $54.95

• Includes all the feature from Deluxe Edition PLUS
• Provides guidance for investments
• Uncovers deductions for rental property
• State Return is additional $34.95

State Return Price:
TurboTax State with Free Edition: $25.95 per state
TurboTax State with Basic, Deluxe, Premier: $34.95 per state

Free federal tax preparation and e-file if your Adjusted Gross Income is $30,000 or less or you are active military or you qualify for Earned Income Tax Credit. Includes Form 982 (Mortgage Forgiveness Debt Relief).

Reviews:
So far, I have found TurboTax to be the most user-friendly tax preparation software. I have used both the online and desktop version, and they are very similar. If you have been using the desktop version previously, you will find that migrating to the online version an easy task.

When it comes to user flow, TurboTax is still primarily based on the interview method. You are asked a series of questions and the software figures out which tax forms you need to fill out. In that past, I have found such method too cumbersome and time-consuming. However, they have improved their process since then and made it into a hybrid of interview-based and form-based methods. For beginners, you can still follow the interview questions which provide most guidance. For seasoned users, you are free to jump to specific forms that you know you need to use.

One cool feature is that for every page you navigate to, there is a side panel filled with popular questions raised by the “Live Community” regarding to the specific topics on that page.

Similar to H&R Block, TurboTax charges between $25.95 to $34.95 for each State E-File. Bottom line is that if you are looking for the best consumer tax preparation software, TurboTax is the leading candidate. However, it’s definitely not the cheapest. My recommendation is that unless your tax return is complicated enough to take advantage of the many features that TurboTax has to offer, look for a cheaper solution that can complete your tax return just as effectively.

Screenshots:
W2 Form

Income & Wages

Federal & State Tax Payment Options and Refund Status Information

For everyone’s convenience, I decided to compile a list including refund and payment information for filing your Federal and State income tax. In general, you can check on the status of your refund 7 days after you e-file. If you filed a paper return, allow 4 to 6 weeks for processing before checking on the status. Therefore, the quickest way to get your refund back is to e-file your tax return.

Here are some tips directly from IRS Website:

How long should I wait to check for my refund status?
Answer:
Please wait 7 days after you e-file. If you filed on paper, please allow 4 – 6 weeks for processing of your return.

What can I do to get my refund issued ASAP?
Answer:
The quickest way to have your return processed and your refund issued is to file electronically. Your wait time will be cut in half – from six weeks to three.

According Publication 2043, here is E-File Refund Cycle Chart:
Refund Inquiries
Taxpayers who e-filed can get refund information 72 hours after the electronic return data is acknowledged as accepted by the IRS. To check the status of a refund go to www.irs.gov and click on Where’s My Refund? Taxpayers without internet access can get refund information by calling 1-800-829-1954 or 1-800-829-4477.

Federal & State Tax Payment Options and Refund Status Information

State Free Tax Preparation and Electronic Filing

If you read my previous entry on IRS Free File Alliance – eFile Your Taxes For Free, today we will take a look at the free file programs for the states. Like the IRS Free File Alliance Program, some state also participate in the State Free File Alliance to offer free tax preparation and e-file services to eligible taxpayers. Individual tax software companies provide these free services. Each participating company sets its own eligibility requirements. Not every taxpayer qualifies for the free services. Below are the requirements from some of the tax software companies.

Intuit Tax Freedom Project offers free state tax filing if you meet the following qualifications:

• Qualify for the Earned Income Tax Credit (EITC), or
• Earned $30,000 or less Adjusted Gross Income (AGI), or
• Served Active Duty Military (including Reservists and National Guard) with a military W2 and AGI of $56,000 or less.

TaxSlayer offers free state filing if you meet the following qualifications:

• 25 years old or younger and household income of less than $56,000;
• or 68 years old or older;
• or Active Military Personnel;
• or If you qualify for Earned Income Tax Credit;
• or Your Federal Adjusted Gross Income (AGI) is less than $10,000

OnLine Taxes offers free state filing if you meet the following qualification:

• Age 20 or younger;

TaxHawk offers free state filing if you meet the following qualification:

• Your federal Adjusted Gross Income is $20,000 or less;

I have compiled the list of individual tax software companies supporting Free File Program for each state. Click on the each state link to go directly to the state’s Free File page. Once you have filed your tax, don’t forget to check Federal & State Tax Payment Options and Refund Status Information for information on your tax refund or tax payment options.

TIP: Read the eligibility requirements carefully before proceeding to filing your tax return. You are under no obligation to buy any product or service.

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming do not have a state income tax return filing requirements for reporting W2 wage income. Two of the states, New Hampshire and Tennessee, however require taxpayers to file returns for individual interest and dividend income.

H&R Block’s TaxCut

TaxCut Free Federal Edition + E-file, TaxCut Basic + E-file and TaxCut Premium + E-file all make filing your taxes easy by taking you through a simple, step-by-step tax interview. TaxCut Free Federal Edition + E-file is best for people with very simple tax situations. If you’d like to import your prior year personal and tax data, TaxCut Basic + E-file would be best for you. Or, if you’re looking for extra tax help and guidance with a Schedule C, home mortgage, rental property, home office, business expenses or asset depreciation, TaxCut Premium + E-file would be best for you. With TaxCut Premium + E-file, you’ll also receive 1 free tax consultation with an H&R Block tax professional at no additional cost.

In addition H&R Block offers TaxCut Signature if you prefer to do your own taxes, but want the added reassurance of having a tax professional review your return and then sign and e-file it with the IRS for you. Signature makes completing your taxes easy by taking you through the simple, step-by-step tax interview of TaxCut® Premium + E-file. Then, at the end of the interview, you’ll be able to choose to send your return to a tax professional who will complete the process for you. And, it includes the TaxCut Premium + E-file’s extra tax help and guidance for filers with a Schedule C, home mortgage, rental property, home office, business expenses or asset depreciation.

• An easy interview process that helps you complete your return before submitting it to your tax professional for review
• Automatic double-checking of your return for errors
• Easy access to IRS publications
• Imports data from TaxCut® online and software, H&R Block Offices, and TurboTax® software
• Advice for getting key tax benefits as your life changes (marriage, home buying, career changes and more)
• Store your return on H&R Block’s secure servers for 3 years
• Built-in multimedia video tax guidance
• Guidance to maximize tax savings associated with home ownership, education and more
• Additional assistance on investment income and stock options
• Business Expense Assistant
• Extensive help for the self-employed on home office and business expense deductions
• Guidance for rental property income and expenses
• Federal e-file included free
• Only from H&R Block: Unlimited year-round tax advice from a live H&R Block tax professional

H&R Block, founded in 1955, is not only the world’s largest tax services provider but also a fully-integrated financial services company that partners with its clients, helping them save for retirement, buy a home, pay for college, manage a business and much more.

H&R Block operates more than 12,000 offices in the U.S. and more than 1,300 locations in Canada, Australia. We have prepared 400 million tax returns since 1955. But it takes a team to serve our clients, whether it’s in the office or via the Internet.

Today, our focus is on delivering outstanding customer service and helping our clients reach their financial goals. As we see it, their success is a key measure of our success, now and in the days to come.

Supported Forms:
Federal Tax Forms Supported Varies by product:
Free Federal Edition
Basic Federal Edition
Premium Federal Edition
Signature Federal Edition

State Tax Forms Supported
All States Plus DC

Pricing:
Pricing Chart

Free Federal Edition + E-file

• A simple return excludes self-employment income (Schedule C), rental and royalty income (Schedule E), farm income (Schedule F) and shareholder/partnership income or loss (Schedule K-1)

Basic + E-file – $14.95

• Only from H&R Block: Worry-free Audit Support®
  
  Worry-free Audit Support is available for clients who purchase and use H&R Block tax software or online tax preparation solutions to prepare and successfully file (via e-file or print and mail) their 2008 individual income tax returns (federal or state). It does not provide for reimbursement of any taxes, penalties or interest imposed by taxing authorities. Additional terms and restrictions apply.

Premium + E-file – $39.95

• Only from H&R Block: Worry-free Audit Support® offers guidance plus an H&R Block enrolled agent to represent you in the event of an audit
• Only from H&R Block: With 1 included Ask a Tax Advisor session, an H&R Block tax professional can help answer your tax question via
  1-on-1 phone or e-mail consultation (a $19.95 value)

Signature – $79.95

• All the benefits of TaxCut® Premium + E-file and more
• Only from H&R Block: Unlimited live tax advice from an H&R Block tax professional, during tax preparation and year-round
• Only from H&R Block: An H&R Block tax professional can review, edit, sign and e-file your return for you
• Only from H&R Block: Worry-free Audit Support® and the H&R Block Guarantee assures that you’ll have support of an H&R Block enrolled agent if the IRS audits your return

State (base price) – $29.95

Free federal online tax preparation and e-file if your adjusted gross income is $56,000 or less and you are age 50 or younger. Includes Form 982 (Mortgage Forgiveness Debt Relief).

Reviews:
H&R Block and Intuit are the two leading Tax Service Providers. H&R Block offers a full suite of product and service to help you with your tax needs. They offer online tax software, desktop software, and over 1300 local offices. At this point, it’s only a matter of preferences for not picking H&R Block.

Their interview style tax preparation is very easy to follow. What impresses me the most is the abundance of information and assistance available to users while they are preparing their return. TaxCut provides assistance in the following forms:

• Ask a Tax Advisor
• Second Look® Review
• Tax Tips
• Tax Calculators
• Join Tax Discussions

Granted, some of these assistance do not come free. However, it’s nice to know that you can get help whenever you needed. Different versions of TaxCut is designed based on the level of complexity of your tax return. For people with more complicated returns, the Premium Edition and Signature Edition both provides tax professional assistance for a very reasonable cost.

The only downside is that State E-File is expensive at $29.95. Once you have completed your federal tax return, the state tax return more or less simply imports data from your federal tax return. I suppose this is their marketing strategy where since you have spent all your time preparing your federal tax return, you would go somewhere else to do your state return.

Screenshots:
W2 Form

Federal Deductions

FileYourTaxes.com

FileYourTaxes.com is faster, convenient, contemporary and hassle-free alternative to filing your taxes the old-fashioned way.

• No installation of software is involved.
• Electronic filing (eFile) option – We eFile your taxes free if we construct them for a fee.
• Fill the tax forms on your computer screen, click a button — and your taxes are ready to be filed electronically, at no extra cost.
• If you choose the Direct Deposit option, your refund will be deposited into your bank account with the speed of the electrons. Likewise, you may have your balance due amounts paid through Electronic Funds Withdrawal – Direct Debit .
• Our I-PAYbyCreditCard integrated file and pay product will allow you to make your balance due payment using your credit card as you file your return.

We eFile Federal Resident Individual Income Tax returns to all five Internal Revenue Service (IRS) Service Centers, as well as to the State of California Franchise Tax Board (FTB). The FTB filings are made to the Direct Filing Portal and the complete filing process is achieved in real time. Other filings are made in batch mode. Other Supported State income Tax Returns will be eFiled in a ‘piggy-back’ fashion, wrapped within the Federal package with or without the Federal filing. We also allow the “State Only” option for eFiling. We also provide hard-copy returns to you via U.S. Certified Mail (or other means) if you choose for us to do so, for an additional fee. We do not charge for the eFiling, customer service or your OnLine printing of returns that were constructed by us for a fee. There may also be other free services provided.

Supported Forms:
Federal Tax Forms Supported (Form 1040, 1040A, 1040EZ…)
State Tax Forms Supported (So far only Arizona, California, Colorado, Delaware, Kansas, Kentucky, Michigan, MIssouri, New York, and Wisconsin are announced.)

Pricing:
Pricing Chart

Federal (base price) – $26.75

• Form W-2 and/or 1099Rs – First 3 are free, $1 for each after
• Additional Forms Subject To Fee
  

  Schedule 1	Schedule 2	Schedule 3
  Schedule A	Schedule B	Schedule C
  Schedule D	Schedule E	Schedule EIC
  Schedule F	Schedule H	Schedule R
  Schedule SE	Form 982	Form 1116
  Form 1310	Form 2106	Form 2120
  Form 2441	Form 2555	Form 3903
  Form 4136	Form 4137	Form 4562
  Form 4684	Form 4797	Form 4952
  Form 5074	Form 5329	Form 5695
  Form 6251	Form 6252	Form 8283
  Form 8296	Form 8582	Form 8606
  Form 8812	Form 8824	Form 8829
  Form 8862	Form 8863	Form 8880
  Form 8888	Form 8889	Form 8901
  Form 8903	Form 8917	Form 8919

State (base price) – $23.50
eFiling – FREE!
6 Months of OnLine Printing – FREE!

If you qualify for the California State Form 540-2EZ with our additional limitations (Total income less than $10,000 or $25,000 for those who have dependents and who are using the filing status Married Filing Joint, Head of Household, or Qualifying Widower, as well as other limitations), as an industry partner to the California Franchise Tax Board, we will construct your return and eFile it for you at no charge!

Free federal tax preparation if your Adjusted Gross Income is $56,000 or less and you are aged 17 to 60 and you live in the following states: AL, AR, AZ, CA, CO, DE, FL, GA, IA, ID, IL, IN, KS, KY, LA, MD, MI, MN, MO, MS, NC, NE, NJ, NM, NV, NY, OH, OK, OR, TX, UT, VA, WA, or WI. Includes Form 982 (Mortgage Forgiveness Debt Relief).

Reviews:
I would not recommend to anyone to use FileYourTaxes.com to prepare their tax return. There are many reasons not to use their service:

1. Expensive price. The base price plus additional add-on costs just do not justify the quality of the product. Also beware of the additional costs if you need to use Schedule A, Schedule C, Schedule D, …
2. Very poor software. Right off the bat I ran into a problem (see screenshot below) which forces me to abort and login again.
   
3. Very confusing user interface. For example, once you click on the button to add a schedule or tax form, it’s been saved in your account. If you decide later on that you want to abort the tax form, you will need to follow this awkward message to remove it from your return.
   

Conclusion:
If if I were somehow to qualify for FREE E-File from FileYourTaxes.com, I would stay away from them.

Screenshots:
W2 Form

Schedule C

TaxSlayer.com

Growing out of an established firm with a solid reputation and over 30 years in the Tax Preparation business, TaxSlayer has the full expertise of a professional tax service behind it. TaxSlayer is proud to assist you in preparing and e-Filing your taxes.

The TaxSlayer Mission is… To provide a quality product, exceptional customer service, while providing our fellow employees with an enriched and financially rewarding career.

The TaxSlayer Story Our Professional Tax Package, TaxSlayer Pro was introduced to professional tax practitioners in 1992. Starting in 1998, we used the basic technology from our professional package to develop our individual version for online preparation and e-Filing.

Our tax preparation software has been used to complete millions of returns over the past eleven years. Our aim is to provide you with the highest quality program and online technical support. Our TaxSlayer Individual program is a fully featured tax preparation program that is designed for you, the individual taxpayer. This program provides all the forms, calculations and communication links to allow you to prepare and e-File your tax return electronically with the IRS.

Supported Forms:
Federal Tax Forms Supported (Form 1040, 1040A, 1040EZ…)
State Tax Forms Supported (All States Plus DC)

Pricing:
Pricing Chart

TaxSlayer.com Classic lets you prepare both your Federal and State for Free.

• Pay only $9.95 to e-File or print
• Investments & Rental Property Module
• Schedule C (Small Business)

TaxSlayer Premium was designed by combing through THOUSANDS of pages of IRS forms and Instructions to find you the most deductions.

• Pay only $14.95 to e-File or print
• Includes all features of TaxSlayer Classic PLUS
• Deductions Maximizer
• Life Events Wizard
• Audit Protection

TaxSlayer salutes the men and women of the United States Armed Forces, and is honored to perform its patriotic duty by offering this service. Be sure to return to the Home Page of TaxSlayer.com and choose “Try Free Now” for TaxSlayer.com Classic to begin!

Free federal tax return preparation and e-file if your AGI is $10,000 or less or you are age 25 or younger or 65 and older, or if you are Active Military or you qualify for Earned Income Tax Credit. Includes Form 982 (Mortgage Forgiveness Debt Relief).

Reviews:
TaxSlayer has been around the industry for a while now. They have improved their software look and feel over the years. My initial impression is that it looks very similar to TurboTax which I am familiar with. The navigation is easy to follow and flexible enough to allow you jump from section to section. The Help section is intuitive and helpful if you get stuck. At $9.95/$14.95, TaxSlayer is a cheaper alternative to some of the other premium products on the market.

Demo:

Screenshots:
W2 Form

Federal

1040NOW.NET

FREE online tax preparation. No download. 1040Now Online Tax Prep and E-Filing is a breeze to use. E-Filing is only $14.95 for 1040-EZ and $19.95 for 1040-A and 1040 return. There will be no charge for our service until you e-file your tax return. E-Filing programs are available for all states. Free Online Support.

Supported Forms:
Federal Tax Forms Supported (Form 1040, 1040A, 1040EZ…)
State Tax Forms Supported (All States Plus DC)

Pricing:
Pricing Chart

• 1040EZ – $14.95
• 1040A – $19.95
• 1040 (Long Form) – $19.95
• State Tax Return – $17.95

FREE federal tax preparation & e-file if your AGI is $54,000 or less and you are age 72 or under and you live in AL, AR, AZ, CA, CO, CT, DC, DE, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NJ, NM, NY, OH, OK, OR, PA, RI, SC, UT, VA, VT, WI, or WV.

Reviews:
BBB Ratings

The BBB Ratings for 1040NOW is quite bad. My initial impression of their website is that it’s still got a long way to go to compete with the big boys such as TurboTax, H&R Block, or TaxAct. The User Interface is very primitive. It’s looks more like an outdated accounting entry system. There is no structured flow to the tax preparation process. The only upside is that they seem to support a very comprehensive list of federal tax forms.

One interesting thing I noticed about their pricing is that they charge $19.95 to restore tax return/user account deleted by user. What this tells me is that they actually do not delete any data from their system even if a users specifically asked them to. I am a little uncomfortable with that design, considering all of my private information (SSN, wage, employer,…) are contained in my tax return.

Screenshots:
W2 Form

Schedule C